NEUBERGER&BERMAN
EQUITY ASSETS
SUPPLEMENT TO THE PROSPECTUS DATED DECEMBER 15, 1997
I. THE SECTION WHICH PROVIDES A SUMMARY OF THE FEATURES OF NEUBERGER&BERMAN
MANHATTAN ASSETS (PAGE 4) IS REVISED TO READ AS FOLLOWS:
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MANHATTAN ASSETS Broadly diversified, Invests in securities believed to
medium-cap growth fund. have the maximum potential for
long-term capital appreciation.
Portfolio managers seek stocks of
companies that are projected to grow
at above-average rates and that
appear to the managers poised for a
period of accelerated earnings.
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II. THE FIRST TWO PARAGRAPHS OF THE SECTION REGARDING THE INVESTMENT PROGRAM
OF NEUBERGER&BERMAN MANHATTAN PORTFOLIO (PAGE 19) ARE REVISED TO READ AS
FOLLOWS:
INVESTMENT PROGRAMS
NEUBERGER&BERMAN MANHATTAN PORTFOLIO
The investment objective of Neuberger&Berman MANHATTAN Portfolio and
Neuberger&Berman MANHATTAN Assets is to seek capital appreciation without regard
to income.
Neuberger&Berman MANHATTAN Portfolio currently intends to focus primarily
on the securities of medium-capitalization companies ("mid-cap companies")
believed by N&B Management to have the maximum potential for long-term capital
appreciation. However, the Portfolio can invest in the securities of companies
from any capitalization level. The Portfolio regards mid-cap companies to be
those companies with market capitalizations that, at the time of investment,
fall within the capitalization range of the Russell Midcap(TM) Index as last
announced by the Frank Russell Company before the date of this Prospectus. For
purposes of this Prospectus, that range was approximately $1.1 billion to $8
billion. Companies whose market capitalizations move out of the mid-cap range
after purchase continue to be considered mid-cap companies for purposes of the
Portfolio's investment program.
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III. THE FOLLOWING PARAGRAPH IS ADDED TO THE SECTION REGARDING MANAGEMENT AND
ADMINISTRATION (PAGE 30):
MANAGEMENT AND ADMINISTRATION
INVESTMENT MANAGER, ADMINISTRATOR, DISTRIBUTOR, AND SUB-ADVISER
YEAR 2000. Like other financial and business organizations, the Funds and
Portfolios could be adversely affected if computer systems they rely on do not
properly process date-related information and data involving the years 2000 and
after. N&B Management and Neuberger&Berman are taking steps that they believe
are reasonable to address this problem in their own computer systems and to
obtain assurances that comparable steps are being taken by the Funds' and
Portfolios' other major service providers. N&B Management also attempts to
evaluate the potential impact of this problem on the issuers of investment
securities that the Portfolios purchase. At this time, however, there can be no
assurance that these steps will be sufficient to avoid any adverse impact on the
Funds and Portfolios.
IV. THE FOLLOWING SENTENCE IS ADDED TO THE END OF THE SECOND PARAGRAPH OF THE
SECTION RELATING TO ADMINISTRATION FEES (PAGE 32):
MANAGEMENT AND ADMINISTRATION
EXPENSES
(Under some arrangements, N&B Management may compensate an Institution partially
or entirely at a flat rate per client account, which could amount to more than
0.25% of the value of Fund shares held by the Institution in the case of clients
having small accounts.)
This Supplement is dated July 9, 1998, and replaces all prior supplements.
